These last few weeks have been simply overwhelming to say the least, in addition new projects keep coming up. I am currently working on a project with several top  commentators called the  “contrarian Round Table Series” where I put forward an extremely radical question and answer it and then ask the other commentators to do the same. It will debut tonight if everything goes well on www.financialsense.com. The current list of commentators are Bill Murphy, George Paulos from www.freebuck.com, Peter Spina from www.goldseek.com, John Tyler from www.infognome.com, Gale bullock from www.pgtigercat.com, myself and Tim Woods from  www.financialsense.com who will be filling in for Jim Puplava. The question is highly provocative and should make an interesting read.

 My trusted Associate  John  has given me permission to send you the following excerpt from his letter, we often work together and are currently running a paid service using our combined skills.

I chose to send this article out because it is very similar to an article I was going to start writing and since I am so pressed for time and the theme is pretty much identical to what I was going to write on, it makes sense not to waste time doing the same thing twice.

 Inflation: Friend or Foe?

Treasurers and Fed Chairman alike develop a new tone of reverence in their voice when they mention the dreaded "I" word, inflation. Like a child saying "I'm not scared of the dark", the "I" word, we are told is nothing to be scared of  - for the moment any way.

 

Even these venerable gentlemen know that inflation has many benefits AS IT STARTS.

 

What's more, its a happy time. Deflation is only grim, but who can't crack a smile when the true cost of repaying their debt tumbles? Who doesn't feel happy when the value of their home has gone up 20% without having to lift a finger? Sales increase, and even the stock market performs well in inflations early stages. Even the sour old Infognome manages to produce something that has the shape of a smile, although it is really a grimace.

 

Over the next few newsletters I will explain to you why it should be a concern, and why The Infognome views his aging years with a little intrepidation for the next generation of ankle- biters

 

Inflation is a disease of the human condition. It is incurable and has a long incubation period based on monetary excess. Once its appearance is obvious, it is too late to stop major damage to the lifeblood of the nation: faith in a monetary system. History will show how this disease strikes in varying forms, with the most rabid form being hyperinflation. This is accompanied by secondary diseases such as back strain from lugging sacks of money around. A truck load of notes would be needed to exchange for a low value gold coin. A more recent Argentinean outbreak meant the funds from selling a residence would hardly fill the grocery trolley two years later.

 

There's a lot we need to do to fight this disease. I'm talking personal salvation here, because the nothing can be done for a nation in its grip before havoc is created!

 

The International Bank Credit Analyst notes the robust nature of the global economy. Because "Inflation"  they say ," stay with reflationary trades". Really brave members of the establishment e.g. Australia's Treasurer, Peter Costello, mention the dirty "i" word When hosing down concern about the recent rate rise, he said inflation was not a danger.

 

Inflation in the traditional sense is not here, but the evidence is mounting that the scene is set and will start its inevitable work in the coming few years. In future letters, we'll revisit this issue, and discuss how we can protect ourselves and families.

 

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 Sol's foot note

 My take on this whole inflation situation is that the Fed's are dreaming when they keep talking about inflation, inflation is defined as in increase in the monetary base or amount of money and not something that is reflected in price increases.  We are in a paradox situation right now we have inflation and deflationary pressures occurring at the same time, and I think this will continue for a long time   due to the competitive currency devaluations that all nations feel that they need to perform in order to stay competitive, this stupidity is going to lead to a huge world wide currency crisis. I will expand on both these issues at some future date

The link to the Index reading course is below

http://www.infognome.com/confirmation.htm